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Daily Mail
4 days ago
- Business
- Daily Mail
White House warns Downing Street against letting China build 'super embassy' near sensitive financial sites
The Oval Office has urged Downing Street against giving a Chinese embassy the green light to be built near London financial centres. Previously, proposals for the 'super-embassy' were rejected by the Conservative government amid concerns from British intelligence. However, the plans have been reintroduced following lobbying from China 's very own President Xi Jinping. But fresh warning have since emerged, as due to the Royal Mint Court's locality to a sensitive hub of essential communication cables, it poses a great risk for an attack. The suggested site is also situated between several major financial hubs in Canary Wharf and the City as well as three crucial data centres. It is understood US President Donald Trump has warned Sir Keir Starmer against giving the embassy the go-ahead. The matter is believed to have been discussed during trade talks, as Britain and its Atlantic allies discuss how they will implement a trade deal to avoid UK steel producers being lumbered with 50 percent import tariffs by July 9. According to the Times, US diplomats would be trepidatious about sharing intelligence with Britain if the embassy went ahead. A senior US official told the publication: 'The United States is deeply concerned about providing China with potential access to the sensitive communications of one of our closest allies.' It comes after a claims 'dark cabling' running beneath the proposed site 'feeds the City of London' were given in a memo to the United States' National Security Council by members of the Inter-Parliamentary Alliance on China (Ipac). John Moolenaar, the Republican head of the House of Representatives' China committee said if these reports were 'accurate' that the site would 'pose an unacceptable risk' to both the UK and US. 'The Chinese Communist Party has a clear track record of targeting critical infrastructure.' he said. 'This development would raise serious concerns in the United States and could be viewed as an act of strategic overreach by Beijing and a curious error in judgment by London.' The executive director of IPAC, Luke de Pulford dubbed the matter as a 'flashpoint' in US-UK trade talks, adding that it was 'staggering' the White House had to corroborate the cabling risk to 'defend its own financial system. 'It's time to send Xi Jinping a clear message: no matter the pressure or coercion, the UK and US won't trade away national security, and this embassy isn't happening,' he said. China has been attempting to revise plans for the Royal Mint building, which neighbour the Tower of London, since they were purchased in 2018. It is believed the Chines foreign minister, Wang Yi, brought up the matter with foreign secretary, David Lammy, while visiting London last year. According to The Times, President Xi had also discussed the same issue with the Prime Minister in a phone conversation. The proposal for the embassy, which would be China's largest in Europe, was previously rejected by Tower Hamlets council in 2022. But two weeks after Labour Chancellor Rachel Reeves came back from a visit to China earlier this year, both the council's and Scotland Yard's objections were dropped. Priti Patel, the shadow foreign secretary, described China as a 'dangerous threat to the national and economic security of our country'. She said the Conservative party continued to stand 'firmly' against the embassy proposals, stating her party would never put the UK's 'financial centre or country at risk.' Next Monday, three of Trump's aides are scheduled to meet with their Chinese peers in London for discussions in a bid to solve the current trade war between the two economic powerhouses. The Treasury secretary Scott Bessent, the commerce secretary Howard Lutnick and the trade representative Jamieson Greer will act as representatives for the US, Trump has declared on Truth Social. Yesterday, China 's foreign ministry confirmed vice-premier He Lifeng will be on British shores from June 8 until June 13, adding that talks would with the US would take place. Previously, a Chinese embassy spokesperson has quashed spy allegations, stating: 'Anti-China elements are always keen on slandering and attacking China.' A government spokesman said: 'Applications for a new Chinese embassy in Tower Hamlets have been called in for ministers to decide. A final decision will be made in due course.'
Yahoo
18-03-2025
- Business
- Yahoo
Defence firm QinetiQ warns of US, UK contract award delays, shares fall
(Reuters) -British defence and security company QinetiQ warned on Monday of delays in short-term contracts being awarded in the U.S. and UK, where new policies are being implemented after changes in government. Shares in the company, which develops and tests systems used across defence, space, government and other sectors, fell as much as 22.2% and are on track for their worst day on record, after QinetiQ said the delays would affect its revenues. Its UK Intelligence business, which makes up about a fourth of revenues, has experienced delays in contracts of shorter duration, with delays also seen at its Global Solutions unit, which accounts for another quarter of sales and records QinetiQ's U.S. contracts. QinetiQ is also restructuring its U.S. business, expecting a charge of about 140 million pounds ($181.3 million) at year-end. The rest of its business under EMEA services and UK defence, however, is performing strongly due to greater exposure to longer contracts, the company said. Britain's Labour government, which took office last July, is aiming to speed up defence procurement, but the industry is awaiting clarity on government spending priorities in a review expected this spring. Britain last month also announced an increase in military spending amid rising geopolitical tensions. Citi analysts said in a note that the U.S. political situation and UK contract delays are likely to create an uncertainty overhang for QinetiQ stock in the near term, without elaborating. The company forecast organic revenue growth of about 2% for the year ending March 31. That implies sales of about 1.95 billion pounds, short of analysts' consensus of 2.04 billion pounds. For fiscal 2026, growth is expected to improve slightly to about 3% to 5%, QinetiQ said, adding that it would buy back shares of up to 200 million pounds over the next two years. ($1 = 0.7721 pounds) Sign in to access your portfolio
